15-001-XIE
Gross Domestic Product by Industry
November 2001 |
Gross domestic product (GDP) advanced 0.2% in November, after rising 0.3% in October. With these two increases, the economy has regained slightly more than half the ground it lost in September.
Sharply higher auto sales lifted the retail industry and provided the single largest push to the economy in November. Strong sales of computer equipment boosted wholesaling activity. Travel-related industries expanded for the second month in a row. Residential construction activity continued its upward trend as mortgage rates continued to fall. However, lower energy prices reduced oil and gas exploration activity. Manufacturing output declined slightly as the recent upswing in transportation equipment was negated by the continuing erosion in demand for telecommunications and electronic equipment investment.
Record car sales boost retailing activity
Retail sales surged for the second consecutive month increasing 2.1% in November. Sharply higher new motor vehicles sales were the impetus behind this strength as interest free financing helped put consumers into new car showrooms. Sales at automotive dealers surged 7.3% in November, the single largest monthly increase since December 1997. Excluding autos, retailers had a lacklustre gain of 0.1%. Higher sales at furniture stores were offset by lower sales at food and department stores.
Wholesaling activity advanced 0.5% in November, after falling significantly in the previous two months. Distributors of computers and software were largely responsible for November's increase. Computer sales rose 5.5% in November; but, this was only the second time in ten months that computer have risen. Increased wholesaling in the consumer products category also contributed to November's strength.
Travel-related industries advanced again
Industries associated with the travel sector made some gains in November, although the effects of September 11th continued to hamper demand for their outputs. Air transportation, which was hit particularly hard in September, was up 2.6% in November. Although demand for air travel improved, air transportation activity remained 10.9% below August levels. The passenger rail transportation industry gained at the expense of air travel. Partial rebounds were also reported for car rental, taxi and limousine services and the scenic and sightseeing industry.
The accommodations industry advanced for a second straight month, although output in this industry remains 3.4% below August levels. The restaurant industry, which suffered only a minor setback in September, advanced 0.7% in November. The travel and tour agency industry gained 1.1%; output in this industry was still 8.1% short of August levels. The output of the gambling industry rose 1.5% as the number of tourists from the US increased slightly from lower September and October levels.
Low mortgage rates spur home construction
The build-up in construction activity continued; output grew 0.3% in November. Residential building construction advanced 0.9%; the fifth increase in as many months for residential builders. Increases were reported for both single-family homes and multiple residential units. Forty-year lows in interest rates helped push up demand for both new and existing housing. Real estate brokers also saw more business, a result of lower mortgage rates. Real estate brokerage activity advanced 4.5% in November after a substantial 5.2% increase in October. Engineering and repair construction rose for the third consecutive month; however, these gains largely offset a slump during the summer months. However, work on non-residential building projects declined for the third straight month.
Mining sector hurt by reduced exploration
In November, mining sector output declined for the third straight month, now 9.2% short of its April peak. Lower prices for oil and gas continued to discourage exploration activities. Drilling and rigging services output declined 9.6% in November, the sixth decline in seven months. Oil production edged up slightly, but natural gas output fell.
Production at metal mines advanced 5.6%, reflecting gains in almost all types of metals. Output of the iron ore industry shot up 15.7% after declining 35.9% in October; however, output levels are still 30% below those of 2000. Non-metallic mineral mining declined 2.2% as increased diamond production was offset by lower salt, potash and asbestos output.
Manufacturing relatively stable
Manufacturing output remained relatively steady, edging down 0.1% in November. Sharply weaker demand for electronic and electrical equipment was again a major cause in manufacturing weakness, although producers of machinery, chemicals, paper and wood products saw declines as well. Strength in manufacturing came from makers of transportation equipment, food, beverages, tobacco and primary metals products. Ten of the 21 major manufacturing groups, representing 41% of total manufacturing output, declined in November.
Production of computers and electronic products continued its downward spiral, falling 2.2% in November. Production levels were less than half of their August 2000 peak. November's weakness was led by makers of telecommunications gear (-8.9%) and computer equipment (-3.2%). Fabricators of semi-conductors bucked the trend, raising output 3.5%; November was only the third month since August 2000 that this industry boosted production.
Output of electrical equipment manufacturers receded a further 4.3% in November, the tenth decline in eleven months. Makers of wire and cable (-14.9%), household appliances (-3.7%), electrical equipment (-2.9%) and lighting equipment (-0.2%) all reported declines. Manufacturers of most types of machinery also reduced production - output fell 1.7%.
Chemical manufacturers scaled back production 0.9% in November after raising output 2.9% in October. Petrochemical refiners suffered in light of low prices and flagging demand. However, a buoyant pharmaceutical industry continued to expand. Pharmaceutical production levels are up 28.6% from November 2000.
Production of paper products dropped 0.8% in November as manufacturers continued to take downtime due to weak demand and high inventories. Pulp production declined 2.2%, following an 11.6% increase in October, mirroring export flows. Manufacturing of newsprint remained little changed, edging up 0.2% in November. The imposition of new US anti-dumping penalties on softwood lumber continued to take its toll on the Canadian wood industry as output fell a further 0.9% in November.
Motor vehicle assembly advanced 1.8% in November, the second consecutive monthly increase. Meanwhile, automotive parts production remained relatively flat. The North American auto industry's attempts to reduce inventory levels using generous sales incentives seemed to work, as stocks on dealers' lots declined to more manageable levels. This bodes well for future North American auto production. Makers of other transportation equipment also boosted output in November. The ship and boat building industry ramped up production 10.9%, the third consecutive monthly increase.
Other industries
Output of utilities fell 0.6% in November, as unseasonably warmer temperatures reduced residential and industry heating needs. Business services activity fell 0.3%, as most types of professional services (except advertising services) recorded declines in November. Demand for business services cooled considerably in 2001 - output levels are now back to August 2000 levels.
Information and communications technologies sector
Starting with this November 2001 release, the monthly GDP statistics will include an aggregation for the Information and communications technologies (ICT) sector and its manufacturing and services components.
Output of the ICT sector declined 0.2% in November, returning to output levels not seen since March 2000. Production in November 2001 amounted to just under 56.8 billions, wich represented 6.1% of GDP. The continuing expansion of ICT services (+0.4%) was more than offset by the ongoing retrenchment of manufacturers of ICT products (-3.2%). The ICT sector is comprised of 84% services and 16% manufacturing.
[Main menu |
Highlights |
Tables and charts |
Appendices |
User information |
Products and services |
Contact us |
Français]
All rights reserved Statistics Canada
